Second time it crashed

edited October 2006 in Hardware
OK, the computer (Dell Dimension 9100) runs fine and then one day I see the screen

Windows cannot start because the following file is missing or corrupt
windows/system32/config/system

I made a boot disk on my laptop and boot to CD on the PC. I enter the setup screen and all the files load; I then get the option to hit enter to setup windows XP or hit 'r' to repair. No matter which one I choose, I then get the error: setup did not find any hard disk drives installed on this computer. setup cannot continue press F3 to reboot.

When this happened before, I somehow was able to restore the computer to factory settings (just like it came out of the box) of course I lost all my files. This was 2 months ago. I bought the computer a year ago. Warranty just expired.

So question 1: How do I restore again? (Can't recall what I did)
question 2: What causes this and what can I do? My wife and son use this computer for internet and games. I assume a game is causing this (Roller Coaster Tycoon 3 maybe?

I know one issue could be the PC is media center edition and laptop is XP pro.

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